'What's Trading' Options Recap: Apple Drop Weighs on Nasdaq

Individual names seeing action included Groupon and Sandridge.

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Market action is mixed and slowing to a crawl heading into the final hour Friday. The economy was in focus early after the Labor Department said that 146,000 new jobs were created in November, which was significantly better than the 90,000 that was expected. The unemployment rate dropped to 7.7% and hourly earnings rose 0.2%. Overall, the report was better than economists had predicted and stock index futures ticked higher before the opening bell.

However, the early rally attempt was thwarted after University of Michigan said its index of consumer sentiment fell to 74.5 this month and well below expectations of 82.7. Negative commentary from House Speaker John Boehner suggesting Obama is taking a "slow walk to the fiscal cliff" failed to bolster sentiment through midday, but the overall action has been rangebound and lacking conviction – which has been the case throughout the week.

Crude oil is off 42 cents to $84.85, gold is up $2.5 to $1704.4 and stock market averages are little moved as well. The Dow Jones Industrial Average (INDEXDJX:.DJI) is up 57 points, with JPM and BAC posting the best gains. However, a $13 drop in Apple (NASDAQ:AAPL) is weighing on the NASDAQ, (INDEXNASDAQ:NDX) which is down 14 points.

CBOE Volatility Index (INDEXCBOE:VIX) is down .54 to 16.08 and activity in the index pits have been anemic in recent days, suggesting that the media is focused on fiscal cliff concerns, but players don't see the situation as a significant near-term event risk.

Among the individual names seeing action, Groupon (NASDAQ:GRPN) gained 71 cents to $4.52 and saw an afternoon pop higher along with increased options activity. Roughly 19,000 puts and 45,000 calls traded in Groupon. A bullish three-way spread was initiated in the Sandridge (NYSE:SD) June calls. Shares of the Oklahoma City oil and gas company are up 44 cents to $7.23. Bullish trading is also being seen in TIVO, Hovnanian (NYSE:HOV), and US Airways (NYSE:LCC).

Keep in mind, only two weeks remain until the December expiration and Jan 2013s, which include former LEAPs, expire in six weeks. It could be a good time to sell some premium heading into the seasonally slow period in the second half of December. Check the order flow for ideas and have a great weekend!